Daily Brief Energy/Materials: LG Chem Ltd, Ultratech Cement, Lynas Corp Ltd, Auric Mining, Goliath Resources , Daido Steel, Corbion NV, Ring Energy Inc, Barton Gold Holdings , VAALCO Energy and more

• With this new rule, the FSS is flagging shaky rights offerings early, signaling a likely correction request—and often, the first step toward the deal getting axed.
• Spot the red flags early and use the window before the FSS drops the hammer to position for a reversal play.
• The FSS’s early notice makes a reversal likely as traders bet on the deal getting nuked after the initial disclosure drop.

• UltraTech Cement, part of the Aditya Birla Group, is entering the 80,000+ crore wires & cables market with INR 1,800 crore investment, targeting a December 2026 plant launch in Gujarat.
• The sector is highly fragmented, with no dominant player exceeding 20% market share, creating an opportunity for UltraTech to disrupt with its financial strength, backward integration, and superior product quality.
• This move positions UltraTech as a diversified building materials leader, leveraging synergies with Hindalco to offer cost-efficient, high-quality electrical solutions, reshaping competition in the industry.

• Lynas, a six and a half billion dollar mining company, faced challenges in their half yearly results with higher unit costs and a significant decrease in cash position.
• The company’s cash reserves have diminished by over $200 million, raising concerns about the sustainability of their operations in the current rare earths price environment.
• Expansion projects in Mount Weld and Kalgoorlie are ongoing, with potential impacts on future financial performance and the need for additional financing options.

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• Auric Mining Limited (ASX:AWJ) is a junior gold company aiming to take advantage of higher gold prices to generate cash flow from two key projects.
• AWJ has been mining and tolling ore from the Jeffreys Find Project since late 2023 and has generated ~$105m in revenue from the production and sale of 27.6koz of gold.
• To date, AWJ has received ~$12.9m in net proceeds from the project with further distributions to be received in 2H25.

• Goliath Resources provides investors with exposure to gold, silver, and copper resource exploration and leverage to an increasing in-ground inventory with discovery upside during a gold price market that reached new all-time highs.
• The downside is limited by the expected significant positive news flow ongoing in 2025.
• Since our last update, the Company has reported the highest grades from Surebet yet.

• Daido Steel’s cumulative FY24 Q1~Q3 earnings landed in line with the firm’s revised forecast, with the 9-month OP [IFRS basis] coming in at ¥34,070mil (-10.6% YoY) on sales of ¥433,961mil (-1.1% YoY).
• The decline in OP is primarily due to tough comps – in FY23 the firm reported ¥7,200mil from real estate sales gains.
• Although the 9-month OP has achieved 85% of the full-year guidance, Daido Steel did not change the full-year forecast due to some cost items such as fixed asset tax to be incurred in Q4.

• In this edition: • Aalberts | takes large restructuring charge to improve profitability • AMG Critical Materials | increases its FY25 adjusted outlook to more than USD 150m • Corbion | expects FY25 organic EBITDA growth of more than 25% • Van Lanschot Kempen | solid FY24; EUR 1.40/share excess cash return on top of dividend

• Ring is adding production and proved reserves in its core Central Basin Platform (CBP) through the $100-million asset acquisition of acreage offsetting its Shafter Lake operations in Andrews County, Texas from Lime Rock Resources IV, LP.
• The assets consist of ~17,700 net acres (100% HBP) that are contiguous to Ring’s existing acreage. 3Q24 production averaged 2,300 BOE/d (>80% oil) from ~101 gross wells.
• Management estimates that the acreage could support more than 40 gross drilling locations that are expected to compete for capital in the 2025 plan.

• Barton Gold Holdings Limited (ASX:BGD) is a junior gold company that is focused on progressing the development of the Tunkillia project after completing a scoping study in July 24.
• The study highlighted the potential for an economic mining operation which would produce 833koz of gold and 1,993koz of silver over ~six years.
• In addition to continuing development work, BGD continues to conduct exploration at Tunkillia and its Tarcoola project.

• The FPSO Baobab Ivoirien MV10 at the Baobab oil field in Côte d’Ivoire ceased production on January 31, 2025, and the last lifting from the vessel was scheduled for around February 6, 2025.
• The vessel is scheduled to be towed to shipyards in Dubai for a planned refurbishment on March 24, 2025.
• Baobab production is expected to resume in 2026 when the refurbished FPSO is returned to the field.